Relief Now Available to More Canadian Tax Filers

The Voluntary Disclosure Program (VDP) for overdue returns and filings has existed for a long time. In short, a submission under the VDP is a request that CRA waive the late filing penalties. Generally if this is the first time you’ve filed a late return and if CRA has not previously demanded via letter that you file the return, they will waive the penalties and any interest associated with them.

That second part is important: the VDP is out of reach if CRA has already requested the return. But that has just changed as of September 2025. You can read CRA’s own words here, but here’s the skinny: despite the ‘Voluntary’ part of VDP, clients can now apply even if CRA has prompted them to file.

Prompted vs Unprompted filing

Now there are two kinds of VDP: those where the taxpayer files completely voluntarily without being asked (‘unprompted’), and those where CRA has demanded a return (‘prompted’). Prompted VDPs used to be impossible, but not anymore.

Learn more: What is a Demand Letter?

Under the new rules, the possible outcomes of an accepted Voluntary Disclosure are as follows:

  1. Unprompted Disclosures get “General Relief”: 75% interest relief and full (100%) penalty relief.
  2. Prompted Disclosures get “Partial Relief”: 25% interest relief and up to full (100%) penalty relief.

Learn more: What is the difference between CRA penalties and interest?

It’s Still Better To File Before Being Asked

This is good news overall for Canadians who have to file returns late. Now, even if CRA sends a letter demanding a return, it’s still possible to catch a break. However it’s also clear that the amount of money you can save with a voluntary disclosure is higher if you get ahead of the situation and file before CRA prompts you to.

Need Help with a Voluntary Disclosure?

For years, Bonaventure Personal Tax Advisors has been helping people file their overdue returns, square away their tax issues, and generally liaise with the Canada Revenue Agency (CRA) to keep them happy so our clients can get on with their lives. Filing voluntary disclosures is all part of that. If you’d rather have the pros interact with the bureaucrats, we’re here for you. Get in touch or click the button below and let’s put a plan together.